Suing an Insurance Company for Denial of Claims

After an accident and injuries, you might need to file one or more insurance claims to seek compensation for your medical bills and other losses. You might have a strong claim and expect to easily receive a fair settlement for your injuries. 

Unfortunately, insurance companies sometimes act in bad faith, denying or undervaluing valid claims at their customers’ expense. In such cases, you have legal grounds to sue them. 

However, if you are considering suing an insurance company, it is important to understand the grounds for such a lawsuit and the steps involved. Learn more as the personal injury team at the Law Offices of Marc L. Shapiro, P.A., shed light on how to carry out insurance litigation.

When Can I File a Bad Faith Lawsuit Against My Insurer?

Insurance companies have a duty to handle claims fairly and in good faith. When they fail to meet their obligations, Florida’s insurance laws allow the claimant to file a bad faith lawsuit. 

However, according to HB-837, you must prove not just mere negligence on the part of the insurer but that they actually acted in bad faith. This is a challenging legal standard that makes it wise to engage a personal injury lawyer. They can assess if your situation meets the legal threshold of a bad faith practice lawsuit. Here are common instances when filing such a lawsuit might be appropriate.

Wrongful Claim Denial

Sometimes, you might receive a claim denial due to insufficient evidence or another error, and your lawyer can appeal the denial with the insurer. However, wrongful claim denial means an insurance company denies a claim without a valid reason or satisfactory justification. For instance, they may misinterpret policy terms or make arbitrary decisions that go against your policy contract. 

Untimely and Incomplete Claim Process

Delays in processing or incomplete investigations can cause unnecessary hardship, especially if they violate the policy terms. If you were injured in a car accident, for instance, these delays can also hinder your ability to recover from injuries, leading to mounting expenses or unaddressed repairs. 

You can consider suing an insurance company based on untimely processes to push for timely resolution and compensation for the additional damages you incurred.

Untimely Payment to the Claimant

Even after approving a claim, some insurers fail to issue payments within the agreed timeframe. Delayed payments can create financial strain, especially if you are relying on the settlement for medical expenses, property replacement costs and repairs, or lost income. 

When insurers withhold payments unnecessarily, they undermine your ability to recover and meet obligations. Legal action can compel them to carry out their responsibilities promptly.

Inadequate Payments

Insurance companies may attempt to underpay claims by offering settlements far below the coverage amounts outlined in your policy. This tactic is especially common in cases involving significant losses. 

Lowball offers often fail to cover the full extent of your damages, leaving you with insufficient financial resources. Luckily, you can fight back to ensure you receive the compensation you are entitled to under your policy.

Failure to Pay Valid Claims

When insurers refuse to honor valid claims outright, they breach their contractual duty to compensate you properly. Such refusals can occur even when you have provided ample evidence and complied with all policy requirements. For this reason, it is recommended to hire a Florida personal injury lawyer to help push insurers to fulfill their obligations and provide the support you need.

Considering Suing an Insurance Company? Call The Law Offices of Marc L. Shapiro, P.A.

If your insurer has denied your claim through bad faith practices, you have legal grounds to pursue litigation. However, you need an attorney by your side to help you prove that the insurer failed to meet their contractual duty to you. The personal injury lawyers at the Law Offices of Marc L. Shapiro, P.A., are committed to helping you develop a strategy to hold your insurance company accountable for the denied claims. Call us today at 239-356-6662 to schedule a consultation.